The Office of Cost Analysis is pleased to announce that the University has successfully completed negotiations with the federal government for a new five-year facilities and administration (F&A) rate agreement. The new agreement includes the following:
- The on-campus Organized Research rate was fixed at 55% MTDC for FY24, and will now be 54.0% for FY25 (starting 7/1/24) and beyond
- The on-campus Instruction rate was fixed at 50% for FY24, and will remain at 50%
- The on-campus DoD Contract rate was fixed at 57% for FY24, and is now 55.5% for FY25 and beyond
- The on-campus Other Sponsored Activities rate was fixed at 35% for FY24, and has now increased to 37% for FY25 and beyond
- The on-campus Hormel rate was fixed at 59% for FY24, and it will remain at 59% for FY25 and beyond
- The off-campus rate remains at 26% MTDC for all types of projects.
PIs and their support staff are strongly encouraged to begin using these new rates in new and renewal proposals immediately. MN-GEMS and EFS are being updated with the new rates and they will be applied automatically to newly created proposal budgets. Existing proposal budgets may need to be updated manually. Kristen Berning is working on developing a job aid to show people how to edit the rate on an existing proposal in MN-GEMS.
Recognizing that there are proposals in advanced stages of preparation or already in the routing and approval process, there will be some flexibility allowed in the use of either the old or new rates. However, any proposals that are due to the sponsor on or after August 1 st , or any proposals submitted to SPA on or after July 31 st , must use the new rates.
As a reminder, existing awards (including continuations) will retain the F&A rate shown in their original NOGA until a new competitive period (e.g., new or renewal) is awarded. If you are unsure what rate to use, please confer with your SPA Grant and Contract Officer (GCO).